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A comment on SBF scheduled to testify tomorrow at US House hearing on FTX collapse. Parent comment

Re:SBF scheduled to testify tomorrow at US House hearing on ... by skybrian on Monday December 12, 2022 @02:24PM (#33958984)
As I understand it, most people using FTX were not buy-and-hold investors who wanted FTX to "store their assets." It was a place where people loaned out their crypto, among other things.

It doesn't seem like there are ways to loan out crypto without risk. However, there are methods to mathematically guarantee that you will at least end up holding collateral that's worth much less than you thought it would after something bad happens.

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Re:SBF scheduled to testify tomorrow at US House hearing on ... by siftrics on Monday December 12, 2022 @02:31PM (#33959058)
Unfortunately, this is not true.

Many non-US engineers were paid salaries in stables or fiat on FTX. These people gained exposure to US stocks and crypto, or just held onto their USD on FTX.

I personally know people who lost their life savings on FTX, even though the majority of their holdings was fiat.

[ Parent | on HN ]